Maharey launches new social housing funding

Housing
Minister Steve Maharey opened a workshop in Palmerston North
this afternoon about the $63 million now available to
community groups and local government for social housing
initiatives.

The workshop is one of 11 being held around
the country to introduce the Housing Innovation Fund for
third sector groups (not-for-profit, non-government
community and Maori organisations) and the Local Government
Housing Fund. The funding is available over the next four
years to encourage third sector groups and local government
to increase their involvement in providing rental housing
and home ownership opportunities to low-income earners and
those with special needs over the next four years.

Steve
Maharey said demand for social housing is increasing and the
funding will enable a wider range of organisations to become
involved in meeting these needs.

“To effectively meet New
Zealand’s housing challenges the government wants to work
more closely in partnership with churches, the community,
local government and others. We know that many
non-government organisations want to get involved in social
housing and the two new funds will support them to do
so.

“Through the Housing Innovation Fund capital funding,
grants and low interest loans for demonstration projects
will be available for partnerships between Housing New
Zealand Corporation (HNZC) and community groups to buy,
build or modify rental accommodation and to develop
affordable home ownership opportunities.

“Funding will be
specifically targeted at initiatives for low to moderate
income households whose housing needs are not being met by
the private housing market. Examples include applicants on
HNZC waiting lists in Auckland who because of their priority
are unlikely to be offered a state house, people with
disabilities, and iwi/Maori and Pacific
peoples.

“Feasibility and establishment grants to help
community groups meet some of the costs of developing new
proposals and access specialist help will also be available.
HNZC will also support the development of a third sector
representative group to support and represent
community-based housing providers.

“The objective of the
Local Government Housing Fund is to encourage councils to
keep and expand their existing rental housing stock.
Funding will be in the form of interest-free suspensory
loans for acquisitions, modernisations and
reconfigurations.

“We want to encourage councils to think
outside the square and be innovative in finding new ways to
develop social housing initiatives. For example by
collaborating with other councils in their region and with
local community-based organisations.

“The objective of
both funds is to ensure existing social housing stock is
retained and that new ideas and innovations are explored to
find the right housing solutions for local communities,”
Steve Maharey said.

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